The LED industry is lucrative and expanding rapidly, presenting a significant opportunity for suppliers of the encapsulants and adhesives. The holy grail for LED producers is general lighting, but costs must come down in order for their products to fully penetrate this huge market. Unfortunately for encapsulant and adhesive makers, some of the latest developments in cost reduction will mean that they face a fight to retain their share of this growing pie. The challenge will come as LED producers strive to reduce cost per lumen light output.